CWB announces NVCC subordinated debenture offering

Not for distribution to U.S. news wire services or for dissemination in the United States.

EDMONTON, Alberta,  – Canadian Western Bank (“CWB”) (TSX: CWB) today announced its intent to issue $250 million aggregate principal amount of 3.668% Series F Subordinated Debentures due June 11, 2029 (Non-Viability Contingent Capital (NVCC)) (the “Debentures”). The Debentures are to be sold through a syndicate of agents led by BMO Capital Markets and RBC Capital Markets. The expected closing date is on or about June 11, 2019.

Interest on the Debentures will be payable semi-annually from the date of issue until June 11, 2024 at 3.668% per annum. From June 11, 2024 until maturity on June 11, 2029, the Debentures will pay a quarterly coupon at a rate of the 90 day bankers’ acceptance rate plus 1.99%, beginning on September 11, 2024.

On or after June 11, 2024, CWB may, at its option, with the prior approval of the Superintendent of Financial Institutions Canada, on giving not more than 60 nor less than 30 days’ notice to the registered holders of the Debentures, redeem the Debentures, in whole or in part, on any date at a redemption price equal to the outstanding principal amount plus accrued and unpaid interest to but excluding the date fixed for redemption

Net proceeds from the offering will be added to CWB’s general funds and utilized for general banking purposes, including future refinancing requirements. CWB intends to file a prospectus supplement to its January 4, 2019 base shelf prospectus in all provinces and territories of Canada in respect of this issue.

The Debentures have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any state securities laws, and may not be offered, sold, directly or indirectly, or delivered within the United States of America and its territories and possessions or to, or for the account or benefit of, United States persons except in certain transactions exempt from the registration requirements of such Act and applicable state securities laws. This press release shall not constitute an offer to sell or a solicitation of an offer to buy securities in the United States.